BlackBerry Ltd (BBRY) Shipment Estimates Reduced by CIBC

The estimated volume shipment for the devices of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) for the third and fourth quarter was reduced by CIBC World Markets due to weak sales data.

BlackBerry shipments impacted by supply constraints

Todd Coupland, an analyst at CIBC World Markets noted that the early indications for Passport demand were “alright” relative to modest expectations. According to him, Google trends showed an increased search interest for the device similar to the BB10’s number two device. The company sold 200,000 units of Passport during the first day of its launching.

“Shipments, however, are being held back by supply constraints for unique screens and keyboards that will limit any upside in fiscal Q3,” said Coupland.He added that the demand for the BB7 and Z30 devices of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is declining rapidly.

Coupland reduced his shipment forecast for the devices of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) from 2.3 million units to 1.6 million units for the third quarter. He also reduced his estimate for the fourth quarter from 2.5 million units to 1.5 million.

BlackBerry needs to improve position in hardware devices

John Chen, the chief executive officer of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is targeting a long-term annual shipment of 10 million units. Coupland said he does expect the Canadian smartphone manufacture to achieve its goal until 2017.

According to Coupland, the company still needs to improve its position in hardware devices before it can achieve its target. He forecasted that BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) would be able to ship 6.8 million units in 2016 and 2017. Based on his perception, the company’s “turnaround has a way to go.”

Coupland maintained his Sector Underperformer rating for the shares of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) with a price target of $6.25 per share.

BlackBerry to unveil BBM Meeting soon

BalckBerry Ltd (NASDAQ:BBRY) (TSE:BB) is expected to introduce its BBM Meeting for enterprises soon. According to John Sims, BlackBerry president for global enterprise solutions, the service allows voice and video conferences for groups of about 25 people.

Yesterday, the company announced that it will be launching is Passport device in South Africa early on November.

The stock price of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is up by nearly 2% to $9.25 per share at the time of this writing around 3:16 in the afternoon in New York.